The government has removed the ₹40 crore cap on financial assistance for building non-specialised ships under the Shipbuilding Financial Assistance Scheme, effective until March 2026.

The aid rate is retained at 14% for the final year, instead of reducing to 11% as earlier planned. Shipbuilders had lobbied for the change due to rising shipbuilding costs—now over ₹300 crore—driven by supply chain issues, regulatory mandates for green fuel, and higher input prices. The revised policy supports larger, more advanced vessels and boosts competitiveness against global rivals like China. Additionally, delivery timelines have been extended: up to four years for contracts involving 2–4 vessels and six years for over four vessels, ensuring broader eligibility for financial aid.